Which of the following is not an adjustment when arriving at net cash flow from operating activities under the indirect method?
A) Noncash expenses, such as depreciation expense
B) Gains and losses on the sale of long-term assets
C) Changes in a company's long-term assets
D) Changes in noncash current assets and current liability accounts

Question

Quizplus · Accepted Answer

Changes in long-term assets are not adjustments made when arriving at net cash flow from operating activities under the indirect method. The adjustments include noncash expenses (such as depreciation), gains and losses on the sale of long-term assets, changes in noncash current assets and current liability accounts.

Which of the Following Is Not an Adjustment When Arriving